The BTC price could see lower prices in the coming months, based on three bearish technical setups currently in play. These setups include a bear flag channel, a bear market support setup, and the potential formation of a death cross.
The bear flag channel suggests that the BTC/USD pair could drop to as low as $23,000. This pattern typically resolves with a downside breakout and a fall of as much as the previous downtrend’s height.
Bitcoin’s bear market support setup indicates that the price may have already bottomed out in the ongoing bear market. However, the price will need to break above its 0.236 Fib line near $28,350 to confirm a long-term bullish recovery.
There is also the possibility of a death cross forming between Bitcoin’s 50-day and 200-day exponential moving averages. Previous death crosses during the Federal Reserve’s interest rate hike period have preceded price declines of around 17-18%. If this fractal plays out again, the bearish BTC price target could be around $21,750.
In summary:
– BTC price could drop to as low as $23,000 based on the bear flag channel pattern.
– Bitcoin’s bear market support setup suggests that the price may have already bottomed out, but confirmation is needed.
– The potential formation of a death cross could lead to a price decline to around $21,750.
